M&A Blog and News
To be successful in acquisitions and integrations, we strongly recommend that organisations focus on some key numbers. The first number to focus on is ‘70’, as in the Rule of 70/70. Up to 70 percent of acquisitions fail to increase shareholder value and 70 percent of the reason for this has to do with what acquirers do (or do not do) in the integration planning and execution phase.
Sleep to succeed…..What? That’s right, the evidence is in and all of us “Type A’s” or wannabees need to get at least one more hour of sleep each night to improve our effectiveness over time. I know what you’re thinking -- “how can a person in M&A who is expected to put in 18-hour days running around with their hair on fire supposed to take sleep seriously?” After all, we have come to worship the overachiever… not the sleeper.
Is email dead? Not even close. It continues to be a common ground for organizations to facilitate communication, make decisions, and in the Microsoft Office world, schedule meetings with one another. The integration of an acquired company’s e-mail is (….usually) standard operating procedure.
You’ve heard the old one-liner about the two things you never want to see being made. The first is sausage. The other is legislation. Or, in our case, M&A methodology. First, let’s define what we are talking about. When we say “M&A methodology” we are referring to how your organization does M&A. This is the overall deal
Most companies have to consider acquisitions and divestitures at different stages of development. Ultimately, most companies will also be faced with an opportunity to sell the entire company, and in some cases there will be little choice if shareholders like the premium being offered. Yet, many companies do not consider acquisitions, divestures or, in particular, the ultimate sale of the company as part of strategy development.
Third in a series, by Jim Jeffrries
Companies, their customers, and their stakeholders cannot and will not tolerate an integration time frame of more than 12 months, period. If you can’t integrate in 12 months or less, forget it!
Many companies consistently operate in the intuitive mode of “don’t rock the boat”, “let’s take our time with this and give the organization time to adjust,” “let’s get everything right the first time.” Haven’t you heard that before?
(Excerpts from The Art of M&A Strategy, Smith & Lajoux, McGraw Hill, New York, 2011, updated)
“You got to know when to hold ’em, know when to fold ’em,
Know when to walk away and know when to run.”
Kenny Rogers - The Gambler
This is part of our on-going series on how companies can build in-house competencies in mergers, acquisitions, and divestitures through cost-effective in-house training programs offered through the M&A Leadership Council.
Today’s topic: Managing a Divestiture to Success